This paper investigates whether the Danish Dispersal Policy on
new refugee immigrants carried out from 1986 to 1998 can be regarded
as a natural experiment. Were refugees randomly assigned to
a location?
The main findings are as follows. First, around 90% of new refugees
were assigned to a location. Second, the dispersal policy successfully
distributed new refugees equally across locations relative to the number
of inhabitants in a location. Third, the actual settlement may
have been influenced by six refugee characteristics. I conclude that
the initial location of new refugees 1986-1998 may be regarded as
random, when controlling for family status, need of treatment, educational
needs, location of close family and friends and nationality at
the time of immigration as well as year of immigration.
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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number
05-3.
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